Flying on a Budget

Competition in Asia's budget-airline market is heating up as rival carriers raise more money and launch services to take on Malaysia's AirAsia Bhd., the undisputed heavyweight of low-cost flying in the region.

Updated July 22, 2011 2:41 a.m. ET

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A decade ago, AirAsia was the upstart, bringing the no-frills airline model to Asia after it succeeded in Europe and the U.S. Although some doubted it would work in Asia, where many residents don't earn enough to fly, AirAsia took off. Now Asia's other carriers are fighting back more aggressively.
Charles Platiau/Reuters…

All Nippon Airways and Malaysia's AirAsia said Thursday they will launch a low-cost carrier to be based at Narita airport near Tokyo, in a bid to take advantage of the growing travel boom in Asia. Here, ANA's President Shinichiro Ito, left, and AirAsia's CEO Tony Fernandes.
Kiyoshi Ota/Bloomberg…

Cebu Pacific raised more than $600 million last year that it will use to expand its fleet. The company, which had only 200,000 international passengers in 2005, expects to carry three million this year.
Ted Aljibe/AFP/Getty Images…

Last week, the low-cost Jetstar Airways unit of Australia's Qantas said it will spend $500 million on its Singapore operations by buying seven additional aircraft by year's end and will add 40 weekly flights by then.
Mick Tsikas/Reuters…

While many details of the new budget carriers are still unclear, ANA-backed Peach Aviation is expected to start flights by March 2012, with fares on short-haul international routes targeted at 50% below current prices.
Kimimasa Mayama/Bloomberg…

Last year, AirAsia poked fun at low-cost carrier Tiger Airways—which is about 33%-owned by Singapore Airlines—after Tiger announced a spate of flight cancellations by running an advertising campaign saying 'If Tigers were meant to fly, they would be born with wings.'
Scott Barbour/Getty Images…

Singapore Airlines' new budget airline is expected to handle medium- and long-haul routes starting sometime over the next year.
Barbara Walton/EPA…

Thai Airways is expected to start its low-cost carrier by the second quarter of 2012. Here, Ampon Kittiampon, chairman of Thai Airways.
Udo Weitz/Bloomberg…

Indian low-cost carrier IndiGo placed an order for 180 Airbus aircraft at the Paris Air Show late last month, valued at more than $15 billion at list prices. Here, a computer-generated image of Airbus's new A320neo fuel saving jet.
Airbus/Associated Press…

Indonesia's state-owned carrier, Garuda, ordered 25 new planes at the air show, 10 of which were scheduled to be used by its low-cost arm Citilink.
Romeo Gacad/AFP/Getty Images…